If you are looking to buy a franchise you should give consideration to a resale. There are many benefits of investing in a franchise resale, so let’s look at some of the key reasons why they are becoming increasingly popular.
Author: Emma Ozenbrook, Operations Manager at Franchise Resales
Firstly, a franchise resale skips the set-up process associated with buying a new franchise; this can usually involve a significant amount of money with a lot of hidden costs which you may not have even considered.
With a resale most of the groundwork has been done for you. For example:
Finding a suitable location.
Building the foundations of the business.
Growing a customer base.
The owner before you established the business, now it’s your turn to help it grow. The business you are investing in may have been running for some time and may even have a loyal and established customer base. Franchises often gain customers by being part of an established brand but maintain customers by providing a consistent service.
This is a huge benefit of buying a franchise resale as you have a ready-made customer base and the worry of finding customers is diminished – they are already there.
When you start a new franchise marketing costs can spiral as you attempt to make people aware that your business even exists. It can take time to raise awareness of your business and even longer to establish a strong customer base to take you to profitability, which means with a resale you should break-even much sooner and start making profits in a shorter time frame.
In the current climate recruitment is becoming increasingly difficult. With a resale, they’re already fully staffed and completely operational. This is a particular bonus if you find that you get on well with the team in place and don’t need to make changes.
Finding the right employees, training them and providing operational experience can take a lot of time and effort, so it’s understandable that so many potential franchisees find the idea of a fully staffed franchise so enticing.
With the proven track record of the business, the banks often look more favourably at lending money, making it easier to fund your new business venture than if you were to start a business from scratch.
With everything already in place for you, a franchise resale allows you to focus on the growth of the business as the previous owner may not have had the time to. If you’re starting a business from scratch, it can be difficult to distinguish its strengths and weaknesses, however, with a resale you can take a strategic view of the business and implement plans to achieve your visions.
About the author
Emma Ozenbrook initially trained as a pre-school teacher, a role she enjoyed for six years, but as her children got older she returned to university and graduated with a degree in English Literature.
After graduation, Ozenbrook worked in an Office Manager role until, in 2019, life guided her into the world of franchising through her partner, Michael Bohan, at Franchise Resales.